- The government had a meeting with mobile phone and electronics manufacturing companies
- It has sought inputs for solutions for the MSIP-like scheme and will focus on 20-odd components
According to a recent report by ET, the government is planning to provide additional sops to promote component manufacturing in the country.
The government had a meeting with mobile phone and electronics manufacturing companies and multiple industry bodies. It is planning to focus on 20-odd components.
An industry executive told the news daily that the government has sought inputs for solutions for the MSIP-like scheme, which could be other than interest subvention and credit default guarantee.
Another official stated that the implementation of any Modified Special Incentive Package Scheme (MSIP)-like scheme should be outside the scope of MeitY (ministry of electronics and information technology) and by an outside department/arm since the ministry’s role is that of a policymaker only.
MSIPS should be continued
A senior industry executive told ET that MSIPS should be continued since it has attracted large investment proposals. But MEIS and MSIPS both are essential to increase the scale of production. Increased volumes would attract the supply chain/component manufacturers to India. He added that MSIPS should be opened to both handset and components manufacturers.
M-SIPS ran from 2012 to 2018. The scheme provided a capital subsidy of 20% in SEZ (25% in non-SEZ) for units engaged in electronics manufacturing. For some of the high capital investment projects like fabs, it provided for reimbursement of Central Taxes and Duties. The incentives were provided on a reimbursement basis. The incentives were available for 29 electronics verticals.